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Rio Tinto Ltd has agreed to sell its undeveloped potash assets and Corumba iron ore mine in Brazil for $1.6 billion in cash to Brazilian miner Vale.
The global miner says no approvals are require for the sale of the undeveloped potash assets which largely comprise the Potasio Rio Colorado (PRC) potash project in Argentina.
The sale of its Corumba iron ore mine in Brazil and associated river logistics operations in Paraguay require regulatory approvals.
Rio Tinto chief financial officer Guy Elliott said the sale demonstrated the depth and quality of the company's asset portfolio and ability to unlock value despite tough credit markets and economic conditions.
"This is a very positive step towards meeting our commitment to reduce debt by $US10 billion ($A15.34 billion) in 2009," he said.